Which of the following suggests that by widening the market's size,international trade can permit longer production runs for manufacturers,which leads to increasing efficiency?
A) Economies of scale
B) Diseconomies of scale
C) Comparative cost theory
D) Absolute cost theory

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages that firms experience when they increase their output. By exporting goods to a larger market, manufacturers can produce goods in larger quantities, resulting in longer production runs and lower costs per unit. This can lead to increased efficiency and profitability.

Which of the Following Suggests That by Widening the Market's